Korean Economy News
Korea’s chip export prices hit record low in Oct amid strong Korean currency

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South Korea’s semiconductor export prices reached a new record low in October due to the stronger Korean currency against the U.S. dollar coupled with the stagnant global chip demand from the pandemic crisis.

The export price index of semiconductors stood at 69.61 in October, the lowest since its record tracking began in January 1985, the Bank of Korea data showed Tuesday. It also is over 30 percent lower compared to the baseline year of 2015.

The index has stayed below the benchmark 100 after reaching 104.32 in December 2018. It touched 75.54 in July and since then it has been on a downward spiral.

The plunge is mainly driven by a fall in overall semiconductor export prices since last year due to an oversupply and the softening global chip demand under the Covid-19 crisis, and the decline picked up pace in October with the Korean won’s rapid gain in value against the U.S dollar, said a central bank official.

The won traded at 1,144.68 against the greenback in October, gaining 2.9 percent from previous month and 3.3 percent from a year earlier.

The Korean won was trading at 1,108.3 per dollar on Tuesday, as of 11:00 a.m.

Despite the fall in export prices, outbound chip shipments have remained robust. As a result, the chip export volume index rose 12.2 percent and the value index 9.1 percent, extending the gaining streak to the sixth month.

By Pulse

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